MUNICIPALITIES IN PARTIAL SUSPENSION OF PAYMENTS

 in-cyprus 7 August 2020 - by Maria Bitar

The chairman of the Union of Municipalities Andreas Vyras, revealed the dire financial situation in which the municipalities find themselves due to reduced revenues in 2020 after the coronavirus pandemic and sends a message to the government to take action on the matter.

Additionally, Vyras points out that the municipalities have not received a single cent as compensation for the dramatic reduction in revenues recorded in the first half of 2020, further telling Philenews:

“Already a partial delay of payments is recorded. Every municipality and especially the ones in the tourist areas have drastically reduced all spending bar the salaries of the employees which are also very hard to keep up with especially during the summer months when tourist area municipalities were counting to cover most of their costs. So it is understood that the period we are going through is very difficult. Some municipalities are considering using methods that may not be in line with the regulations so that they can continue to cover their operating costs such as using money from special funds and from the Pension Funds of their staff”.

When asked which expenses they have stopped paying, Vyras said that “they’ve stopped paying for supplies, fixed costs such as renewal of vehicle fleet and other equipment, as well as their pre-planned development projects”.

As a result, he concluded, there are now problems between the municipalities and their associates.